sec 10(10)Exemption in respect of gratuity

If it is covered under gratuity act,
least of following is exempt
1. actual gratuity received
2. maximum limit rs. 20 lakh
3. last drawn salary×15/26×no. of years of employment

If not covered under gratuity act
least of the following is exempt
1. actual gratuity received
2. maximum limit rs. 20 lakh
3. last 10 month s average salary ×1/2×no. of years of employment

salary includes basic pay+DA (fully for covered under gratuity act ) and only that part enters into retirement benefit for not covered under gratuity act.

Agreed with srividya answer.....

could you please clarify whether the maximum amount is 20 lacs or 10 lacs?

Maximum limit is 20 lacs.

Regards

where it's given as 20 lacs? could you please provide the respective provisions

Herewith attached notification.

Regards

very kind of you Ms. srividya..
thanks for enlighting

Even assessee retires from PSU on31-12-2017 same exemption limit would apply